Many people only want to communicate "good things" to business partners, be they investors, bankers, lawyers, or even customers. As difficult as it may be sometimes, communicating both "the good" and "the bad" is critical.
Communicating "the bad" to trusted partners allows them to assist you and offer suggestions on how to turn the situation around so that it ultimately becomes "the good." Bring forth the news and come prepared to discuss your plans for solving the problem. Remember to stay open-minded to their suggestions as well, as they are likely people who have helped drive success for your business.
Your partners will respect you more for initiating a conversation about bad news rather than forcing them to call you out on it, or worse, having the situation get to a point past saving. After all, no company in the world only has good news all the time—it’s just a matter of how you handle it.
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